Mortgage rates for Oct. 13, 2011

After hitting record lows in 6 of the past 7 weeks, mortgage rates jumped sharply this week. But don't panic, this brings us back to where we were in late August, and at the time, we were talking about mortgage rates being at record lows.

The increases weren't confined to fixed rate mortgages. Adjustable rates were higher also. The average 5-year adjustable is up to 3.26 percent and the 10-year adjustable is now 3.89 percent.

So why the sharp move in rates? Optimism, for the moment anyway, about better job growth in the U.S. and that Europe has a handle on their debt issues and can avoid a meltdown pushed government bond yields and mortgage rates higher. But all it takes is a hiccup in Europe or disappointing earnings or economic news on this side of the Atlantic, and mortgage rates will head right back down.

To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.

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